Characteristics and Motivations of Outbound Tourism of New Zealand

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An Analytical Report

The Thesis of Major Research Project - MBA

Compiled By: Lalith Siriwardena

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

Table of Contents

LIST OF TABLES: ................................................................................................................................ 4

LIST OF FIGURES & GRAPHS ......................................................................................................... 5

ACKNOWLEDGEMENTS ................................................................................................................... 6

EXECUTIVE SUMMARY .................................................................................................................... 7

1. INTRODUCTION ............................................................................................................................. 9

1.1 New Zealand Economy ........................................................................................................... 10

1.2 Research Methodology ........................................................................................................... 10

1.3 Scope ........................................................................................................................................ 11

1.4 Assumptions ............................................................................................................................. 11

2. DEFINITIONS ................................................................................................................................. 12

3. LITERATURE REVIEW ................................................................................................................ 14

PART 1 - New Zealand Outbound Tourism ................................................................................... 17

4. CHARACTERISTICS OF NZ OUTBOUND TOURISM ............................................................ 18

4.1 Number of Outbound Trips: ................................................................................................... 19

4.2 Destination of New Zealand Outbound Tourism ................................................................. 21

4.3 Purpose of Travel: ................................................................................................................... 24

4.4 Trends of Outbound Tourism: ................................................................................................ 26

4.4.1 Seasonality of New Zealand Outbound Travel ............................................................ 26

4.4.2 Trend of Outbound travel to Asia ................................................................................... 27

4.4.3 Trends of Outbound travel to Pacific Islands: .............................................................. 27

4.5 Age Distribution of New Zealand Travellers: ....................................................................... 28

4.6 Number of Visitor Nights: ....................................................................................................... 30

5 TRAVEL MOTIVATIONAL FACOTRS ......................................................................................... 32

5.1 Push & Pull Factors of outbound Tourism: .......................................................................... 33

5.1.1 Maslow’s Hierarchy of Needs ......................................................................................... 33


5.1.2 Push and Pull Factors: .................................................................................................... 34

6. EFFECTS OF EXCHANGE RATE ON OUTBOUND TOURISM ........................................... 36

7. FUTURE OF NEW ZEALAND’S OUTBOUND TOURISM ...................................................... 37

PART 2 - New Zealanders Travelling to Sri-Lanka ....................................................................... 39

8. INBOUND TOURISM OF SRI-LANKA: ...................................................................................... 40

8.1 New Zealanders Travelling to Sri-Lanka .............................................................................. 41

PART 3 - A Profile of New Zealand Outbound Travellers ............................................................ 43

9. AN OVERVIEW OF TRAVEL SURVEY ON BEHAVIOUR ..................................................... 44

10. SURVEY DATA ANALYSIS AND DISCUSSION .................................................................... 45

10.1 Whether they have travelled overseas in last 12 months? ............................................. 45

10.2 How do they normally book air ticket? ............................................................................... 45

10.3 How frequently do they travel? ............................................................................................ 45

10.4 How long do they spend in an overseas holiday? ............................................................ 46

10.5 What do they consider important for a perfect holiday? .................................................. 47

10.6 How important is the Cost for selection of holiday destination? ..................................... 47

10.7 How far following a budget is important for them in planning a holiday? ..................... 49

10.8 How much do they spend on an overseas holiday? ........................................................ 49

10.9 What factors influence to choose Asia as a holiday destination? .................................. 50

10.10 Their likelihood of visiting specific Asian countries ........................................................ 51

10.11 How important is given categories in selection of Asian travel destination?.............. 52

10.12 What comes into their mind, when thinking of Sri-Lanka? ............................................ 52

10.13 What kind of accommodation is preferred, if they travel to Sri-Lanka? ...................... 53

11. CONCLUSION ............................................................................................................................. 54

REFERENCES: .................................................................................................................................. 56

APPENDICES ..................................................................................................................................... 59


List of Tables:

Table 1: Forecasts of Outbound Trips by NZ Residents 20

Table 2: Trips Abroad by NZ residents 21

Table: 3 NZ Resident Departures Ranked by Country of Main Destination (2006- 1996) 23

Table 4: Outbound Travel by Purpose 24

Table 5: New Zealand Outbound Travel to Sri-Lanka 42

Table 6: Distribution of Income of the Sample 44

Table 7: Overseas holiday in past 12 months 45

Table 8: Frequency of Travelling 45

Table 9: Relationship of Income and Frequency of Travel 46

Table 10: What is important for a Perfect Holiday 47

Table 11: Perception on Travel Cost 47

Table 12: Relationship of Income and Cost of Travel 48

Table 13: Perception on following a Budget 49

Table 14: Overseas Holiday Expenses 49

Table 15: Analysis of Holiday Expenditure Gender-wise 49

Table 16: Influential Factors for choice of Asian Holiday Destination 50

Table 17: New Zealand travellers’ Choices of Asian Holiday Destinations 51

Table 18: Analysis of Preferential Asian Holiday Destinations Gender-wise 51

Table 19: Factors Influencing the Selection of Asian Travel Destinations 52

Table 20: Sri-Lanka – the order of recollection 52

Table 21: Preferred Accommodation in Sri-Lanka 53


List of Figures & Graphs

Figures:

Figure 1: New Zealand Resident Departures to All Countries 18

Figure 2: Outbound Travel of NZ Residents 19

Figure 3: Resident Departure by Reason 24

Figure 4: Age Distribution of New Zealand Resident Travellers (2007) 28

Figure 5: Age Distribution of New Zealand Resident Travellers (1991 – 2007) 29

Figure 6 & 7: Number of Nights Spent Overseas 30

Figure 8: Typology of Motivators in Tourism 32

Figure 9: Illustration of Maslow’s Hierarchy of Needs 33

Figure 10: Motivational Factors of Outbound Tourism 34

Figure 11: Trend of New Zealand Outbound Travel to Sri-Lanka 41

Graphs:

Graphs 1 & 6: NZ Outbound Travel Trends 22

Graph 7 & 8: Purpose of Travel all Countries 25

Graph 9: Outbound Travel of NZ Residents – all countries 26

Graph 10: Outbound Travel of NZ Residents to Asia 27

Graphs 11 & 12: Outbound Travel Trend to Fiji & Cook Island 28

Graph 13: Tourist Arrival by year (1966 – 2007) 40

Graph 14: Duration of Overseas Holiday 46


AUTHORSHIP

This research report has been prepared by Lalith Siriwardena, as the Major Research

Project of MBA programme at the Waikato University – New Zealand and reviewed by Dr.

Tim Lockyer.

ACKNOWLEDGEMENTS

I acknowledge and thank several people who have contributed either directly or indirectly to

the creation of this report. Many people have helped me by discussing the issues

surrounding the topic and providing information for the report. Sri-Lankan and New Zealand

friends, academic colleagues and passing acquaintances; I have met in town and country;

they all have over the years taught me many things about New Zealand, its people and its

changes.

An enormous debt of gratitude goes to; Dr. Tim Lockyer, the Associate Professor and

Chairperson of Tourism Hospitality Management of the Waikato University and my

supervisor for the guidance through the process. I could not have gone through this far,

without his patience and help; and next more specifically, two of my friends; James Foster

and Dr. Namal Wijesinghe, for giving me inspiration and support.

I am also extremely grateful to all those people who have been generous with their time and

information in helping me to prepare this report: Jayantha Samarathunga and his wife

Janadissani, Catherine Breeuwer, Pradeep Kumara, Janaki Bandara.

The acknowledgements certainly have to include the enormous support of my wife Gayana

and daughter Janani too. Acknowledgement would not be complete without thanking authors

of the texts mentioned in the reference list.

Lalith Siriwardena

Hamilton, New Zealand

April 2009


EXECUTIVE SUMMARY

The intention of this research is first to study New Zealand outbound travel in broad

perspective and second to investigate the ways in which travellers choose holiday

destinations. The research also examines the recent development of New Zealand outbound

travel with emphasis on the selection of Sri-Lanka as a holiday destination.

Over the last two decades, tourism has proved to be the world’s fastest growing economic

sector. New Zealand tourism is no exception; as it contributes 5.1 percent to the GDP and

has generated as much as 5.8 percent of total employment. New Zealand outbound

tourism has increased 448% in a period of two and half decades since 1983.

According to the New Zealand Tourism Forecast 2008 – 2014, out bound travel will

be in the doldrums through 2009, due to the global economic turmoil; but will revive

gradually.

In 2008, holiday travel has shared 42% of the total travel. While VFR and Business travel

has accounted for 32% and 15% respectively; the other kinds of travel such as Education,

Employment, in transit travel etc. have shared 12% of the total volume. Australia is the most

popular travel destination of New Zealanders; close to 50% of out bound trips are made

there. However, this share has declined lately, because travel to Australia has not grown at

the same rate as the total market. The situation is similar with Fiji which has been the

second popular choice. New Zealanders searching for a Pacific Island getaway then

switched to other South Pacific nations such as Samoa and the Cook Islands.

The outbound travel of any country is affected by the volatility of exchange rates; especially

holiday travel where there is a nearly proportionate relationship between growth in

departures and growth in the value of the currency. When the New Zealand dollar is

relatively low against the USD, it is evident that travellers tend to stay at home and rely on

domestic travel. It is the other way around when the New Zealand dollar appreciates, so that

travellers enjoy the leverage in currency conversion.

A survey was conducted on New Zealand travellers and the results are analysed in this

report. The analysis reveals some relationships between various behaviours of travellers and


it provides some useful data upon which to base further enquiry. It also provides some

reliable empirical evidences for the subject. A majority of survey participants confirmed that

they took holidays primarily for "sightseeing" rather than the expected "escape and

relaxation.”

Not unexpectedly, the cost is regarded as the most important factor in terms of overseas

holiday travel by New Zealanders. Males on overseas holiday tend to spend more than

females and females are more likely to budget, in planning a holiday.

Moreover, New Zealand travellers have indicated that the cost is the key motivator for

selecting an Asian country as a holiday destination. Singapore was the most popular Asian

travel destination out of the given alternatives. Females show stronger preferences to travel

to Singapore and India while males have favour Bangkok, Japan and China. In the case of

Sri_Lanka, Male and Female have an equal preference to travel there, and it is the New

Zealanders’ fourth chosen holiday destination in Asia. Surprisingly, the prevailing

disturbances in Sri Lanka do not seriously discourage New Zealanders from wishing to visit

the country.


1. INTRODUCTION

People travel for different reasons or needs (“Reason for travelling,” 2009). They include

“sightseeing, relaxing, shopping, and visiting friends and relatives, adventure and education”

(“Reason for travelling,” 2009). The 2007 Tourism Satellite Account figures show that

international tourism brought $8.8 billion into the New Zealand economy in 2007 or 5.1

percent of GDP (Statistics NZ, 2007). The dairy industry contributed $6.6 billion, and meat

products made it to $4.75 billion. Therefore, “tourism is clearly an important component of

the New Zealand economy” (Hall & Kearsley, 2001, p.31) and it has been for some time the

largest foreign exchange earner of New Zealand. It has been the industry that underpins

New Zealand’s economic growth (“New Zealand Tourism Strategy – 2015”). The Tourism

Satellite Account further shows that tourism now represents 18.3 percent of total exports of

New Zealand.

The number of New Zealand residents travelling abroad has been increasing over the last

few decades (Refer: Appendix – g for departures in 1950 - 2000) and the forecast for the

future is bright. However, the economic losses being experienced worldwide will be reflected

in the form of reduced spending by potential travellers (NZ Tourism Forecast 2008 – 2014).

This will have a significant impact on tourism globally, resulting in fewer outbound trips. At

this stage, it is unclear when the full impact of the credit crisis will be realised or how long the

economic recovery will take. In the circumstances, such forecasts are not likely to reflect

actual tourism activity in the short-term (NZ Tourism Forecast 2008 – 2014). Optimistically, it

is believed that the economic downturn would persist in short-term and as the tourism is a

resilient industry, the long term forecasts will still be valid.

The report consists of three parts. The first part explores the outbound tourism of New

Zealand in great depth while the second part examines New Zealanders travelling to Sri-

Lanka. The report is underpinned by the Travel Survey conducted in 2008, which looks at

the recreational activities, travel habits and perceptions of NZ travellers. The survey provides

detailed information on travellers’ preferred activities, type of accommodation, choice of an

Asian country as a destination, travel motivators and degree of importance in following a

travel budget. The results of the survey are analysed in the third part.


There is much information available on inbound tourism, similar to the forecast on outbound

tourism as a resource. “Accurate forecasts of tourism demand are [obviously] essential for

planning” (Witt & Song, 2001) and investment in the tourism industry, characterised by large

capital outlays and long lead times on key infrastructure developments, such as airports and

hotels. However, there is much less information concerning the behaviour, perceptions and

experiences of New Zealand outbound travellers. This report seeks to acquire an

understanding of the market segment that includes the following:

The amount likely to be spent on an overseas trip

The activities that travellers like to participate in, accommodation types used, and

nature of intended experience

Demographic information about the tourists and their reasons for travelling,

Such information can be used with confidence by tourism service providers to tailor their

marketing mix. In addition, this study will be useful to the Airlines, Hotels, Airport authorities,

Travel Agents, Duty free shops, Insurers and many others related to the Travel Industry in

preparing strategic plans.

1.1 New Zealand Economy

Economic performance of New Zealand is expected to reach its lowest level in the year

ending March 2009, with activity contracting 0.1 percent, according to data released by the

New Zealand Institute of Economic Research (NZIER).

NZIER's latest release of its Quarterly Predictions forecasts a modest growth for the four

quarters of 2009, leading to 1.6 percent growth in the year ahead until March 2010, with a

boost of 3.3 percent growth in the year ending March 2011. It is envisaged that the current

recession will remain relatively shallow, and subsequent recovery of the economy will be

gradual (NZIER, 2008).

1.2 Research Methodology

In this study, two approaches have been initiated. In terms of NZ outbound travel, the

research was based on literature and information gathered from the internet, text books, and

from people involved in the industry; while to explore habits, attitudes and perceptions of NZ

travellers a questionnaire was used on a convenience sample of 155 potential travellers in

Hamilton and Auckland. The survey consisted of a personal interview and a mail back


survey on a standard questionnaire. The surveyor approached the prospective participants

in public areas at selected locations such as public libraries, private and government offices,

so that a fairly large group was approached at each session. This method was used in the

preliminary research to get a gross estimate, without incurring much cost and time.

In addition, participants were contacted through friends and friends of friends. In technical

terms, this is a non-probability sampling method, in which members are selected in a non-

random manner combining the respondent-driven (RDS), and "snowball” sampling

techniques. The sample consisted of a cross section of people in New Zealand. Conclusions

from research of the literature combined with the findings of this questionnaire have been

used to draw broad conclusions about New Zealand travelling abroad on holiday.

1.2.1 The Questionnaire

The individuals, who agreed to participate for the survey, were given a questionnaire with

fifteen questions; to mark what is important in choosing a destination for overseas holiday.

The subject questionnaire is attached at Appendix – a.

The appropriateness of the questions has been evaluated in a pilot survey on a sample of

twenty five people; subsequently, the questionnaire was redesigned with the feedback

received. Question number one is a screener question, which identifies whether the

individual has travelled overseas for a holiday during the last twelve months; it offers an

opportunity to opt out.

1.3 Scope

The report includes all measurable forms of outbound tourism activity in New Zealand,

including activities pursued by persons under 15 years of age and is therefore exhaustive.

The research was limited to Hamilton and Auckland cities.

1.4 Assumptions

The report is based on a series of assumptions, some of which have a major bearing on the

projected levels of tourism activity. The based, economic and demographic data and trends

for each market have been sourced directly from official compilers of relevant countries; thus

very reliable. The economic models in such case are based on historical examples, but

times change and the models may not be as reliable as they used to be.


2. DEFINITIONS

2.1 Tourism: The term tourism has a “very broad meaning” (Collier, 2008, p.3), because it

“invariably [senses] different understandings to different people” (Collier & Harraway, 2003,

p.3). The New Zealand Tourism Industry as defined by Collier & Harraway is “the study of

man away from his usual habitat, of the industry which responds to his needs, and of the

impacts that both he and the industry have on the hosts’ socio-cultural, economic and

physical environments” (p.3).

2.2 Tourist: The term tourist is defined as a person who is travelling outside his or her usual

country of residence and staying at least 24 hours away from home (Hall & Kearsley, 2001,

p.4).

2.3 Travelling: For the purpose of this study travelling is defined as change in location of

people on a trip or an act of going from one place to another. “The terms tourism and travel

are sometimes used interchangeably. In this context, travel is considered as it has a similar

definition to tourism, but implies a more purposeful journey” (“Travel and Tourism,” 2008).

2.4 International Tourism: “Occurs when people travel to a country/s other than that in which

they normally reside. International tourism may be subdivided into two categories; inbound

tourism and outbound Tourism” (Collier & Harraway, 2003, p.4).

2.5 Inbound Tourism: The term denotes that the “tourism which involves people coming into

a country, for example people from overseas visiting New Zealand” (Collier & Harraway,

2003, p.4).

2.6 Outbound Tourism: Outbound tourism “involves people departing from a country, for

example; New Zealanders leaving New Zealand to travel overseas” (Collier & Harraway,

2003, p.4).

2.7 International Excursionist: “An international excursionist is a visitor residing in a country

who travels the same day to a country other than that in which he or she usually [residing],

for less than 24 hours, without spending the night in the country visited” (Collier & Harraway,

2003, p.6).


2.8 Heritage Tourism: “The National Trust defines heritage tourism as travelling to

experience the places, artefacts and activities that authentically represent the stories

and people of the past and present” (“Heritage Tourism”, 2009).

2.9 Off-peak: The term describes a less expensive time to travel as result of lower consumer

volume during these periods (Baum & Lundtorp, 1999).

2.10 Package Tours: This is a prepaid travel arrangement that includes transportation,

accommodations, and at least one other component such as meals, transfers, sightseeing

(Collier & Harraway, 2003, p.88).


3. LITERATURE REVIEW

“Tourism closely rivals the dairy industry as New Zealand’s largest export earner;” (Collier &

Harraway, 2003, p.153). That signifies the importance of tourism in the New Zealand

economy. Outbound travel is one of the popular leisure activities of New Zealanders. The

New Zealand Outbound and Domestic Tourism Forecasts of McDermott Fairgray (2000)

state that, the number of short term departures is expected to be increased by 4.8% per

annum from 1.65 million trips from 2006. In a growing market “consumer behaviour is key to

underpinning of all marketing activit[ies] which [are] carried out to develop, promote and sell

tourism products” (Swarbrooke & Horner, 2007). Nevertheless, there is little research on

outbound tourism in New Zealand and motivational factors of travellers in terms of selecting

a destination experience, which is vital for travel planning.

Moreover, the noted significant increase in outbound tours of recent years has been “driven

mainly by a strong exchange rate and lower international airfares. The increases have been

experienced across all purposes of travel, although the largest increases were in the holiday

and [Visiting Friends and Relatives] VFR markets” (“New Zealand Domestic and Outbound

Travel Patterns,”2008).

Further, according to the Outbound Travel Commentary (October, 2008), outbound travel is

up by 5,400 or 12.1% in 2008 over the previous year. Outbound holiday travel on holiday is

also up by 5,100 or 6.9% in the same period, but there have been fewer business trips down

by 1,300 or 4.9%. In total there have been 1.984 million trips undertaken during the year

ended in October 2008; this has increased, by 25,000 or 1.3% from 2007.

With regard to international tourists travel patterns; Collier and Harraway claim that such

phenomenal growth has been influenced by factors such as a general increase in available

leisure time, increasing disposable income, advances in transportation technology, an

increase in education levels, an increase in urbanisation, the increasing influence and

activities of the mass media, and an aging population (Collier & Harraway, 2003) etc.

But where do New Zealanders travel overseas and what are the main motivations for travel

to these destinations? [It has been observed that] much of travel is short haul in nature i.e.

from New Zealand to Australia and the remainder is either medium haul i.e. to Asia or long


haul i.e. to Europe [from New Zealand]” (Page, 2003). “One of the explanations on the

propensity for outbound travel among New Zealanders was made evident in a report; ‘The

Tourism Competitiveness’ of the Tourism Council of Australia (October, 1998). It was

considerably more cost effective for New Zealanders to take a holiday in Australia than to

take a domestic holiday in New Zealand. The report examined an index of competitiveness,

based on package of accommodations, food, beverages, transport and local tours.

Information about characteristics of NZ travelers to different destinations is recorded by the

statistical services of the Ministry of Tourism. The statistics indicate that, though the total

number of outbound travel has been increased by 24,675 in the year 2008 over the previous

year (Statistics NZ); there was a 2% negative growth in Australian outbound travel and the

same has been compromised by Fiji and Asian outbound travels in the same period, which

have shown a growth of 5% in each category (Ministry of Tourism NZ). Further, according to

the WTO Tourism 2020 Vision (2000), South Asia is expected to acquire a 0.5% gain in

global market share in the next decade. The other motivational factors for outbound tourism

may be explained by high levels of disposable income and extended holidays (Swarbrooke &

Horner, 2007, p.63). Apart from that, air travel cost [is also] an important factor in travel

decisions (Crouch, 1994).

Package holiday reduces travel risk (“Times Online”, 2009) and makes the overall cost

cheaper (“The Evolving Role of Travel Agents”, 2009) by stimulating travellers. Similarly,

research indicates that “exchange rate volatility is likely to cause tourists to abandon the idea

of holidaying in a particular country. Secondly, changes in the exchange rate are likely to

have the same impact on the tourist’s destination choice as relative price changes” (Webber,

2001).

As noted above, it is a phenomenon that “outbound tour operators put together packages for

outward travel from a specific destination. The packages presented will often be diverse in

nature. The better-known outbound operators tend to cater for the mass market by offering

package holidays to the more popular tourist destinations” (Collier & Harraway, 2003).

Likewise, outbound tourism offered by New Zealand travel agencies in most cases, provides

three pieces of headline information: countries visited, main form of activity, and price - with

importance in reverse order where price is still a decisive factor.


Australia stands as a cheaper travel destination for New Zealanders. “Clearly, Asia is [the

world’s largest] continent which encompasses a wide variety of national tourism markets with

very different characteristics” (Swarbrooke & Horner, 2007); therefore it has divided Asia into

regions of more manageable size (Boniface & Cooper, 2005) such as; Central Asia, South

East Asia, Western Asia etc. Among all Asian countries; China, Bangkok, Singapore, India

and Sir-Lanka are popular destination choice of NZ travellers.

According to the Annual Statistical Report of Sri-Lankan Tourism; 2627 of New Zealanders

chose Sri-Lanka as a holiday destination in 2007. Sri Lanka is known as a tropical paradise

to escape to. It has a diverse range of tourist attractions; among them; beaches, wildlife

sanctuaries, and historic sites. Ancient ruins are popular among Tourists. ”Heritage tourism,

as it name implies, tends to focus on the historical manifestations of human activities in the

past. Buildings, historical sites, paintings, monuments and so on are all components of

heritage tourism” (Collier, 2003). “Heritage tourism is grow[ing] rapidly in recent years as a

result of higher levels of education, more income, growing awareness of the world [and]

technology” (Dallen & Stephen, 2003). Thus Sri-Lanka should adopt a new approach in

promoting inbound tourism to take the advantage of growing outbound tourism in New

Zealand and other neighbouring countries, such as India and China etc.


PART 1

New Zealand Outbound Tourism


4. CHARACTERISTICS OF NZ OUTBOUND TOURISM

Outbound tourism plays a significant component of the New Zealand tourism industry (Hall &

Kearsley, 2001, p.40). “Thousands of New Zealanders travel off-shore each year, for

holiday, business, visiting friends and relatives and for many other reasons. The Ministry of

Tourism [New Zealand] is responsible for the provision of quality information, research and

forecasts to meet the needs of a wide range of tourism sector users” (Ministry of tourism,

2009). The collection of data on outbound travel is one responsibility of the department.

Along with Statistics New Zealand, the Ministry of Tourism uses data collected from

Departure Cards to determine how many short term trips are taken each year, and the

purpose for each, a copy of which has been attached at Appendix-b.

Figure 1: New Zealand Resident Departures to All Countries

Source: Ministry of Tourism, 2008

The outbound tourism of New Zealand has shown a steady growth over the last 25 years

(Refer Appendix – g for departures in 1950 - 2000). Figure 1 above, illustrates the twenty

five years of outbound travel of New Zealand. It is noticeable in the graph that there are 3

spikes; one in 1988, next in 1996-97 and the other in 2004-05. Similarly, there have been

times when there were slight slumps due to macro conditions which affected the growth. The

attachment at the Appendix-c provides evidence for the massive increase of 1,619,422

outbound trips within twenty five years since 1983.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

Number

Year ended December


Overseas travel by New Zealand residents during the last quarter of 2008 shows negative

growth in comparison to the same period in 2007 (refer Appendix–d). The changed world’s

economic situation has undoubtedly affected the tourism industry. It is a fact that when easy

access to cheap credit is reduced, it leads to decreased spending on discretionary activities

such as travel, which will inevitably be impacted. Apart from that, the recent economic

turmoil has come on top of fuel price volatility which has forced up the cost of airline tickets

and added, or increased, surcharges on many flights.

4.1 Number of Outbound Trips:

As noted above, the number of outbound trips has been increasing. However, “New Zealand

appears to be entering a period of economic difficulty caused by macro economic factors,

common to most parts of the world. The conditions are expected to persist well into 2009.

Therefore, it is likely that outbound [travel] activity will slow down in [2009] and domestic

travel activity will increase” [as it is relatively better affordable] (NZ Tourism Forecast, 2008 –

2014).

“Outbound trips by NZ residents are forecasted to remain flat in 2008 and 2009 at 1.99

million before gradually increasing to 2.3 million by 2014 [as shown in Figure 2 below]. This

represents a total increase over the forecast period of 16.5% (326,000 trips) and an average

increase of 2.2% per annum” (NZ Tourism forecast, 2008 – 2014).

Figure 2: Outbound Travel of NZ Residents

Source: NZ Tourism Forecast 2008 – 2014


On the other hand, as far as the whole year is considered, NZ residents have made

1,979,490 trips by November 2008; which is an increase of 8502 trips or 0.4% on the

previous year of the same period (Key tourism Statistics, 2009).

Similarly, in holistic view, the global growth has now been projected to be around 2% in 2009

(WTO, 2008); considering the downward trend due to the grim economic outlook. That is a

decrease of 2.8% from the original forecast of overall global tourism growth. Optimistically,

such an adverse situation will be short term and the current trend will fall in line with the long

term forecast.

As far as outbound trips are concerned, Australia has been the popular destination choice of

New Zealanders over many years. The attachment at appendix – e; indicates that 47.98%

of New Zealanders have chosen Australia as their tour destination. The second choice was

Fiji as 5.1% trips have been made there. Most of the Kiwis have chosen U.K. and U.S.A. as

the third popular travel destination in 2008 with equal 4.75% share.

Table 1: Forecasts of Outbound Trips by NZ Residents (000’s)

Source: NZ Tourism Forecast 2008 – 2014.


Table 1 indicates the number of trips that NZ residents have made during 2006 and 2008

and the forecast for the next six years. The forecast was made before the global economic

down turn, it needs to be readjusted by making an allowance for the undesirable conditions.

4.2 Destination of New Zealand Outbound Tourism

Table 2: Trips Abroad by NZ residents

Source: Ministry of Tourism 2008

As noted above, Australia has been by far the most popular destination of New Zealanders.

Although Australia shared 49.87% of total number of trips in 2006, it has shown a downward

trend during the period under review and recorded 47.98% in 2008; where there was an

upward trend in overall outbound travel of New Zealand. It is a clear indicator that travellers

in New Zealand have chosen destinations other than Australia. Graphs 1-6 further indicate

the varied overseas travel of New Zealanders to six countries in 2006 - 2008.

Travel to Fiji has shown a fluctuating trend due to the prevailing unrest in the country. It is

apparent that Samoa, the Cook Islands and other Pacific islands have gained Fiji’s lost

market share. New Zealand travel to China has increased steadily in the period of 2006 to

2008; which is 10.58% of increase in the three years period. Increased number of Chinese

permanent residents and Beijing Olympic Games in 2008 may also have contributed to such

positive growth. Similarly, departures to Canada have grown by an extraordinary 17.44% in

the three year period with marginal increase for rest of the world.


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2006 2007 2008

Australia Rest Of the World

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2006 2007 2008

Fiji Rest Of the World

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2006 2007 2008

Canada Rest Of the World

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2006 2007 2008

China Rest Of the World

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2006 2007 2008

Samoa Rest Of the World

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

2006 2007 2008

Cook Island Rest Of the World

Graphs 1 -6: NZ Outbound Travel Trends – Country wise

Australia Fiji

Canada China

Samoa Cook Island

Source: Ministry of Tourism NZ

Table 3 below illustrates the ranks of travel destinations by their popularity from 1996 to

2006, and variation of rank in the five year interval during the subject period. Australia is


Year ended December 2006 Year ended December 2001 Year ended December 1996

Departures RankingShare

(percent)Departures Ranking

Share

(percent)Departures Ranking

Share

(percent)

Australia 929,361 1 49.9 676,047 1 52.5 587,488 1 53.8

Fiji 106,246 2 5.7 63,078 3 4.9 59,044 4 5.4

United Kingdom 89,332 3 4.8 60,940 4 4.7 60,053 3 5.5

United States of America 87,012 4 4.7 65,913 2 5.1 83,259 2 7.6

China, PR 51,202 5 2.8 19,875 6 1.5 6,469 18 0.6

Cook Islands 45,181 6 2.4 19,909 5 1.5 12,725 11 1.2

Samoa 31,327 7 1.7 14,866 11 1.2 14,400 9 1.3

Thailand 29,080 8 1.6 18,046 8 1.4 9,212 15 0.8

India 23,516 9 1.3 8,959 17 0.7 5,747 21 0.5

Hong Kong (SAR) 18,934 10 1.0 19,252 7 1.5 25,065 5 2.3

Japan 17,086 11 0.9 16,921 9 1.3 17,882 7 1.6

Malaysia 16,823 12 0.9 11,639 15 0.9 12,964 10 1.2

Singapore 16,712 13 0.9 14,144 12 1.1 11,516 12 1.1

Canada 16,421 14 0.9 12,884 14 1.0 11,263 13 1.0

Tonga 15,025 15 0.8 7,925 18 0.6 6,467 19 0.6

Korea, Republic of 14,919 16 0.8 9,633 16 0.7 9,909 14 0.9

South Africa 12,616 17 0.7 7,236 19 0.6 7,018 16 0.6

France 11,648 18 0.6 6,038 25 0.5 3,516 26 0.3

Italy 11,625 19 0.6 6,358 22 0.5 3,338 28 0.3

Taiwan 11,320 20 0.6 14,045 13 1.1 15,362 8 1.4

Indonesia 10,843 21 0.6 16,740 10 1.3 18,816 6 1.7

Germany 10,403 22 0.6 6,324 23 0.5 4,875 23 0.4

Vanuatu 9,204 23 0.5 6,311 24 0.5 5,019 22 0.5

Norfolk Island 7,308 24 0.4 6,464 21 0.5 6,642 17 0.6

New Caledonia 7,050 25 0.4 7,010 20 0.5 6,021 20 0.6

Philippines 6,960 26 0.4 4,068 28 0.3 3,394 27 0.3

Viet Nam 6,730 27 0.4 2,447 31 0.2 1,399 33 0.1

Netherlands 6,008 28 0.3 5,050 26 0.4 4,866 24 0.4

French Polynesia 5,436 29 0.3 4,075 27 0.3 4,153 25 0.4

Ireland 4,902 30 0.3 2,751 29 0.2 1,866 30 0.2

Other(1)

231,098 … 12.4 151,645 … 11.8 73,131 … 6.7

Total(2)

1,863,784 … 100.0 1,287,296 … 100.0 1,092,879 … 100.0

Country of main destination

well placed at number ‘One Position’ with a massive difference in the share percentage of

ranked number two. The reasons why Australia is a popular choice of holiday destination of

New Zealanders are that New Zealanders can travel there without applying for a visa before

leaving and the travel cost is relatively low due to economies of scale.

It is understood that outbound travel to Fiji has been erratic and as a result, Fiji's rank has

been fluctuating too. There is a steady growth in New Zealand outbound travel to China,

India, South Africa, France and Italy over the period. The travel to France has been boosted

in 2007 by the Rugby World Cup held with total of 19,200 trips.

Table: 3

NZ Resident Departures Ranked by Country of Main Destination - 2006, 2001 and 1996

Source – Statistics NZ


4.3 Purpose of Travel:

Basically, people travel for three purposes; Holiday, Business and Visit Friends and

Relatives (VFR). The Table 4 exhibits the distribution of New Zealand outbound travel on

those three categories.

Table 4: Outbound Travel by Purpose

Source: Ministry of Tourism 2008

Holiday Travel is the most significant. It was 42% in 2008. Similarly, VFR and Business

account for 32% and 15% respectively. The other kinds of travel such as Education,

Employment, in transit travel etc. share 12% of the total number. The analysis further reveals

that holiday travel has gone down by 1% (3,500 trips) within two years since 2006 (Refer

Figure 3), and at the same time VFR has increased in the subject period from 1% annually

from 30% in 2006. “The VFR market has strong growth potential, since there are large

immigrant and ethnic communities in many countries which will continue to stimulate family

travel on a growing scale, both intra- and inter-regionally” (Paci, 1994). Contrary, “departures

for business purpose (283,800) were down by 4500 (two percent) from the year ended

November 2007” (Statistics New Zealand, 2009).

Figure 3: Resident Departure by Reason – year ended November

Source: Statistics New Zealand,

External Migration Statistics


43%

30%

15%

12%

2005

Holiday

Visiting friends/relatives

Business

Other/not stated

42%

32%

15%

3% 1%

7%

2007 Holiday

Visiting friends/ relativesBusiness

Conventions/ conferences

Education

Other/not stated

Similarly, the outbound travel statistics between 2005 and 2007 show a decline. On the

other hand, the VFR share grew by two percent in the same period.

The core of the outbound market is a short-stayed, high-spending holiday segment which

excludes the VFR market, business visitors, and visitors in transit, people who come for

educational or work purpose, and long stay visitors.

Graph 7 & 8: Purpose of Travel all Countries

Source: Ministry of Tourism

As in Graphs 7 and 8, the VFR market has experienced a rapid growth since 2005 as it has

over the past decade.

On the other hand, business departures account for 15% of all departures in 2007. After a

strong growth period between 1984 and 1996, business departures flattened off.

The dampening economic growth in New Zealand is one of the causes for this. The industry

went through a similar state in 1988–1991 and 1996–1999, due to a decline in the stock

market that affected the New Zealand economy and those of its main trading partners.

Further, the other segments, such as education, convention/conferences shrank at this time,

because they were not able to grow in the light of expanded overall growth of outbound

travel.


4.4 Trends of Outbound Tourism:

4.4.1 Seasonality of New Zealand Outbound Travel

The outbound tourism of New Zealand is predominantly seasonal. Graph 9 of overall

outbound travel of the last three years shows that travel escalates between mid December

and January of each year and in October. The School holidays contribute to the higher

number of departures in those months. The Christmas and New Year holidays -a popular

time for people to visit friends and relatives (VFR) - have also contributed to high departures

in December.

The Travel declines in February onwards and gradually picks up in late August and

September. Holiday departures are normally low in February, with business the main

purpose of travel in that month. The total New Zealand resident departures in January and

February were about half those of the highest months, with New Zealanders preferring to

holiday within New Zealand in the summer.

Graph 9: Outbound Travel of NZ Residents – all countries

Source - Key Statistics, 2009, Ministry of Tourism NZ

0

50

100

150

200

250

28 Sep 12 Oct 26 Oct 9 Nov 23 Nov 7 Dec 21 Dec 4 Jan 18 Jan 1 Feb

(000)

Four weeks ended

All countries

2006/07 2007/08 2008/09


4.4.2 Trend of Outbound travel to Asia

Similar to what has been noted above, there is no exemption in the case of outbound travel

to Asia. Graph - 10 below represents the trend of the last three years. The trend lines of all

three years in the graph run close together, indicating the trend is typical of New Zealand

outbound travel to Asia. Unlike in the above case, the trends spike at the end of December

and plummet down in the first week of January. By the end of January the trend touches the

lowest for the year. When trends of three year are examined as in the Graph 10, it is

observed that the trends peak in the end of December, after a gradual increase in early

November. There is a sharp decline after December and the trend line hits its lowest level in

late January.

Graph 10: Outbound Travel of NZ Residents to Asia

Source - Key Statistics, 2009, Ministry of Tourism NZ

4.4.3 Trends of Outbound travel to Pacific Islands:

Fiji, Samoa and the Cook Islands are popular pacific holiday destinations of New

Zealanders. Graphs 11 and 12 below of Fiji and the Cook Islands show that the trends peak

in September and gradually decline towards early December and again pick up slightly in

late December and early January. It is interesting to note that both countries have an

identical pattern of inbound travel.

0

5

10

15

20

25

30

35

40


Outbound Travel to Asia

2006/07 2007/08 2008/09

(000)


0

2

4

6

8

10

12

14


(000)

Four weeks ended

Fiji

0.0

1.0

2.0

3.0

4.0

5.0

6.0


(000)

Four weeks ended

Cook Islands

Two years ago One year ago Current year

Graphs 11 & 12: Outbound Travel Trend to Fiji & Cook Island

Source: Ministry Tourism NZ - Provisional Four-weekly New Zealand Resident Departures

4.5 Age Distribution of New Zealand Travellers:

Figure 4 below is an illustration of the age distribution of New Zealand outbound travellers in

2007. It exemplifies “how the pattern has changed over the last 17 years. The following

analysis highlights the reasons for this shift, driven by demographic and travel propensity

changes in the New Zealand population” (TAANZ, 2008).

Figure 4: Age Distribution of New Zealand Resident Travellers to All Countries-2007

Source: Ministry of Tourism, 2008

0

2

4

6

8

10

12

0–4 5–9 10–14 15–19 20–24 25–29 30–34 35–39 40–44 45–49 50–54 55–59 60–64 65–69 70–74 75+

Percent

Age group (years)


“Over the last fifteen years (1991-2006) the population of New Zealand increased by 20%

(from 3.5 to 4.2 million), while the number of overseas trips undertaken by residents have

jumped by 139%. New Zealand residents’ propensity for overseas travel has doubled over

this period, from 22 trips per 100 people in 1991 to 44 trips per 100 people in 2006. (Note

that these propensities measure the ratio of trips relative to population, or travel per capita.

They do not strictly represent the proportion of the population that undertook overseas trips,

because they include multiple trips undertaken by some travellers)” (TAANZ, 2008). The

average length of stay and median length of stay for the years ending December, 2004,

2005 and 2006, broken down by both purpose of travel as well as outbound markets, are

outlined in the Appendix- h.

The table therein indicates that the median age of travellers of New Zealand remained at

42.1 years during 2004 – 2006; while Auckland and Northland represent lower and highest

age brackets respectively in the subject period. “Propensity for overseas travel increases

with age, and peaking around their 50s age group, and then declines as age increases (refer

Figure 4). Those in their 50s are the most prolific travellers, taking 69 overseas trips per 100

people in 2006. Travel propensity has increased in all ages over the last fifteen years

although the age of peak propensity shifted from the 45-49 years age group in 1991 to those

in their 50s in 2006.

Figure 5: Age Distribution of New Zealand Resident Travellers 1991 - 2007

Age Group

1996

1991


0

5

10

15

20

25

30

35

40

1-7 8-14 15-21 22-28 29+

Percent

Length of Absence (days)

Source: TAANZ – Travel Statistics

This shift reflects the age progression over time by the baby boomers (born during 1946-

1965, now in their 40s-50s), and that baby boomers have a higher travel propensity than in

previous generations. However, each later generation coming through will have even higher

travel propensity than the previous ones as indicated by the vertical shifts in the Figure 5”

(TAANZ, 2008).

“Over the last fifteen years the population of New Zealand grew at an average of 1.2% per

year. The population is also aging gradually with the highest proportion now in the 35-49 age

group (22.5%). This group will enter the 50-59 age group over the next two decades. They

have the highest propensity for overseas travel as many are at a more affluent stage of their

lives with children no longer dependent, greater discretionary income and more leisure time”

(TAANZ, 2008).

4.6 Number of Visitor Nights:

Figures 6 and 7 set out the number of nights that travellers have spent in the overseas.

Thirty Seven percent of outbound trips in 2007 have been short and confined to “one –

seven” days. The 8 – 14 category accounts for next highest; while 5% of travellers spend 22

-28 days overseas. It is significant that the 1 - 7 days category has been growing since 2003,

while the 8-14 days category has been decreasing.

Figure 6 and 7: Number of Nights Spent Overseas

Source: Ministry of Tourism

0

5

10

15

20

25

30

35

40

1–7 8–14 15–21 22–28 29+

Percent

Length of absence (days)

2007

2003


In 2006, New Zealand travellers spent an average 19.6 days out of the country (refer

Attachment- h). The decrease in average length of stay, as mentioned above, can be

explained by the changing composition of New Zealand’s outbound travel as per the

attachment at Appendix – e. The decline in Travel to Australia has affected length of stay,

although the overall drop in outbound trips has been taken over by new destinations, such

as; China and India. This meant that the average length of stay of visitors to all markets

subsequently declined.


5. TRAVEL MOTIVATIONAL FACTORS

Most often, assumptions regarding New Zealand outbound tourism are determined by the

number of outbound trips. However, this ignores the complexity of the issue. For instance, it

is not only the income of the traveller that impacts on travel behaviour; but what motivates

his or her decision.

Figure 8: Typology of Motivators in Tourism

Source: Adopted from Consumer Behaviour in Tourism (Swarbrooke & Horner, 2007, p.54)

“Motivating factors in tourism can be split into two groups:

1. Those which motivate a person to take a holiday

2. Those which motivate a person to take a particular holiday to a specific destination at

a particular time.

Tourist

Physical

relaxation, sun tan,

health, sexEmotinal

nostalgia, romance,

adventure, spiritual

fulfilment

PersonalVFR, making

friends, stisfying

others, serch for economyPersonal

Development

Increasing knowledge,

learning new skills

Status

exclusivity, fashionability,

obtaining good deal

Cultural

Sightseeing, experiencing new cultures


There are many potential motivators that could relate to either or both of these factors.

Furthermore, there are a number of potential variations on a theme for each individual

motivator, and myriad ways in which they can be combined” (Swarbrooke & Horner, 2007).

Some of the major motivational factors are outlined in Figure 8. In general, tourists are

attracted not by one factor mentioned above, but by multiple factors. However travellers tend

to compromise between those multiple motivators when the final decision is made

(Swarbrooke & Horner, 2007). In such case, the holiday travel represents by one dominant

motivation with other motivational factors are partly satisfied.

5.1 Push & Pull Factors of outbound Tourism:

5.1.1 Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs is based on the assumption that people are motivated by a

series of five broad unsatisfied needs (“Maslow's Hierarchy of Needs,” 2009). These needs

are ranked according to order in which they influence human behaviour, as per Figure 9

below.

Figure 9: Illustration of Maslow’s Hierarchy of Needs (College of Charleston, 2007)


5.1.2 Push and Pull Factors:

As noted above, Maslow’s Hierarchy of Needs can be useful in identifying the order of

satisfying human needs, which in the end leads to purchase of holidays by travellers.

It is assumed that “people travel because they are pushed and pulled to do so” (Seyhmus &

Muzaffer, 1996) by the travellers’ motivational factors. The push factors stimulate the desire

to travel and influence travellers to make the decision, in the mean time the pull factors in

reality create the destination choice.

Figure 10: Motivational Factors of Outbound Tourism

Adopted from: (Baloglu & Uysal, 1996)

More elaborately, “the push factors are considered to be socio-psychological motivations

that predispose the individual to travel, while the pull factors are those that attract the

individual to a specific destination once the decision to travel has been made. Most of the

push factors which are origin - related are intangible or intrinsic desires of the individual

travellers such as the desire for escape, rest and relaxation, health and fitness, adventure,

prestige, and social interaction. [On the other hand, the] pull factors are those that emerge

Push Factors

escape, experience,

prestige, VFR, hobbies,

sightseeing, shopping

Pull Factors

Travel Cost, Culture, Heritage

Outbound Travel


as a result of the attractiveness of a destination as it is perceived by the traveller. They

include tangible resources such as beaches, recreation facilities and historic resources as

well as travellers’ perception and expectation such as novelty, benefit expectation and

marketed image of the destination” (Baloglu & Uysal, 1996). “These different reasons or

motivations to travel can result in very different product and service needs. Understanding

the motivations behind a [traveller’s] trip can go a long way in helping tourism operators truly

understand their client and in so doing, help them to provide a product or service that will

meet the client’s needs” (Collier, 2008, p.107).

Due to the diverse nature of tourism, the travellers’ motivational factors may become

complex and vary country to country, region to region. Figures 10, illustrates the push and

pull motivational factors of the outbound travellers. The topic will be discussed in detail with

regard to local condition in Part 3 of the thesis.


6. EFFECTS OF EXCHANGE RATE ON OUTBOUND TOURISM

In 1985, New Zealand's currency was allowed to float, after the pegging regime. In June

2007, for the first time, the Reserve Bank of New Zealand (RBNZ) had to intervene in the

currency market - to control the rising kiwi dollar. During the past 22 years, New Zealand's

interest rates remained higher than other developed nations. In terms of the exchange rate,

high volatility has been a consistent issue.

While many of New Zealand’s export industries experience large absolute reductions in

returns when the New Zealand dollar appreciates, this is not necessarily so for tourism. In

the long term, the exchange rate is not a determinant of tourism growth but the growth of

disposable income. According to the research done on the subject by the New Zealand

Institute of Economic Research (NZIER); the tourism industry as a whole is less exposed to

the adverse impacts of an appreciating NZ dollar than other sectors.

However, deeper analysis reveals that some market segments are more likely to suffer than

others. Inbound holiday makers are typically much more sensitive to movements in

exchange rates than other types of travellers. At an aggregate level holiday arrivals go down

by 0.2% when the New Zealand dollar goes up in value by 1%. That impact is 10 times

greater than the impact that exchange rates have on other categories of travellers at an

aggregate level (NZIR, Authoritative Analyse, 2007).

In contrast, “outbound travel is highly sensitive to exchange rates, especially holiday travel

where there is a nearly proportionate relationship between growth in departures and growth

in the value of the New Zealand dollar. That suggests that tourism operators who rely on

domestic tourism as well as overseas visitors will find that returns get squeezed not only by

a reduction in spending by international visitors, but also by an increase in outbound travel

from New Zealand when the dollar appreciates” (NZIR, Authoritative Analyse, 2007).

Research has been revealed that a 1% variation in the value of the NZ dollar yields an

approximate 0.9% increase or decrease in holiday departures.


7. FUTURE OF NEW ZEALAND’S OUTBOUND TOURISM

It has been observed that the outbound tourism of New Zealand has been setting new

market trends, such as a declining share of larger destinations, such as Australia, a growth

in smaller, less familiar destinations like Samoa, and a wider variety in tourist demand and

destination choices.

“There is no doubt that distribution of tourism by the year 2020 will be different from that of

the early years of this century. The countries of East Asia and the Pacific (EAP) region are

emerging as important generators of tourism and as major tourist destinations. China in

particular will become a major generator of both [inbound] and outbound tourism, changing

the nature of travel across the globe” (Worldwide Destinations, 2005, p.478).

The growth of the market as a whole is influenced by factors, such as aging population,

search for authenticity, change of peoples’ life style such as increasing stress of work and

other causes. Contrary, “in the short term, the potentially drastic impact of wars and further

terrorist incidents, other factors such as relative price [economic factors] and exchange rate

affecting the cost of travel” (Oppermann & Cooper, 1999) yield a negative growth.

“Although forecasters say that long haul travel will continue to increase, short – haul travel –

especially to neighbouring countries – will still account for a very high proportion of

international trips. Similarly, business tourism will remain an important segment of the

market; but it is probable that developments in communications such as video conferencing

and videophones may reduce the need” (Worldwide Destinations, 2005, p.478).

In terms of New Zealand outbound tourism, the trend is expected to be slowing down in the

next two years due to the current economic crisis. As per Table 1 in page20, on Forecasts

of Outbound Trips by NZ Residents 2008-2014, the trend is expected to remain flat in 2009,

as in 2008, before it picks up in early 2010. After that, there will be an annual growth of

2.2%.

“A study conducted by the Ministry of Tourism suggests that on average each New

Zealander spends around 21 nights away from home each year. When the economy is

strong and international travel becomes more affordable, a higher percentage of these nights


are spent overseas, and when the economy is weak and international travel becomes less

affordable the converse is true. This implies a high degree of substitution between outbound

and domestic travel” (Ministry of tourism, New Zealand Tourism Forecast 2008 – 2014,

2009). As such the domestic tourism is expected to be increase in next few years.

The continued growth of New Zealand outbound tourism is dependent on understanding the

end customer which encompasses the factors that drive their demand for tourism and

delivering quality and value by the service providers.


PART 2

New Zealanders Travelling to Sri-Lanka


8. INBOUND TOURISM OF SRI-LANKA:

Sri Lanka is an island in the Indian Ocean; which is located to the south of the Indian

subcontinent. It was formally known as Ceylon and Serendib. Tourism is one of the main

industries in Sri-Lanka.

There are many tourist attractions, such as; white sandy beaches located in the southern

and eastern parts of the country, wildlife sanctuaries and world heritage sites located in the

central north part of the country. Tourism in Sri-Lanka has a seasonal trend; November,

December and January are peak months for arrivals with a mini peak start in July that lasts

two months.

The top ten inbound tourist markets of Sri-Lanka are India, U.K., Germany, Maldives,

Australia, Netherlands, U.S.A., Japan, Russia and China.

Graph 13: Tourist Arrival by year – 1966 to 2007

Source: Annual Statistical Report of Sri-Lanka (2007)

The inbound tourism of Sri-Lanka has been going through a roller coaster ride as it was

adversely affected by the civil war in the northern part of the country. According to the

Annual Statistical Report of Sri-Lanka (2007); the number of tourists visiting the country

plunged in 2007 by 13.27 percent from a year earlier; that is a drop of arrivals by 65,595

from 559,603 a year earlier.


0

100

200

300

400

500

600

700

No

of

Tri

ps

Trend of NZ Outbound Travel

2007

2008

The fall was mainly from countries like Belgium, Netherlands, and Norway. The situation has

become worse by January 2009, as there has been a drop of 32.4%, (Sri-Lanka Tourism

Development Authority, 2009). It has been observed that the drop was mainly the result of

heightened defensive action of the Humanitarian Armed Forces of Sri-Lanka and a terrorist

group called Tamil Tigers.

Optimistically, the war will end in the coming months and the tourism of Sri-Lanka will once

again have a golden era!

8.1 New Zealanders Travelling to Sri-Lanka

Figure 11: Trend of New Zealand Outbound Travel to Sri-Lanka

Adopted From: Sri-Lanka Tourism Development Authority, 2009

New Zealanders travel to Sri-Lanka primarily for visiting friends and relatives, seeing sites, or

to acquire a new life experience. The statistics provide evidence that Sri-Lanka is still not a

popular holiday destination of New Zealanders since arrivals of New Zealanders contribute

0.54% of the total tourist arrivals in 2007 (Annual Statistical Report of Sri-Lanka Tourism,

p.14). Such a fact is highlighted when the tourist arrival of Australia is reviewed, where

Australians have contributed 4.10% (Annual Statistical Report of Sri-Lanka Tourism, p.14) of

the total guest arrival in Sri-Lanka in the same year. The prevailing unrest in the country,

unavailability of direct flights from New Zealand and focused marketing activities to promote

local tourist attractions are noticeable reasons for such comparative, undesirable results.


Table 5: New Zealand Outbound Travel to Sri-Lanka (Number of Trips)

Month 2007 2008 Change %

January 245 255 4.1

February 192 147 -23.4

March 153 171 11.8

April 162 192 18.5

May 96 129 34.4

June 171 108 -36.8

July 252 144 -42.9

August 234 135 -42.3

September 198 150 -24.2

October 105 123 17.1

November 240 189 -21.3

December 579 497 -14.2

Total 2627 2240 -14.7

Source: Sri-Lanka Tourism Development Authority, 2009

New Zealand travel to Sri-Lanka is predominantly seasonal; occurring mostly between

December and January (Refer Figure: 10). The increased VFR travel market in July and

August, due to availability of cheap flights, twists the trend up during the subject period.

Table: 5 on New Zealand Outbound Travel to Sri-Lanka, illustrates a drop of 14.7% in 2008

as compared with the 2007 travel figures. It exceeds the overall drop of Sri Lanka's inbound

travel by 1.43%. Likewise, the political settlement of the country is the key driver for growth

in the tourism industry in the next 10 – 12 months.


PART 3

A Profile of New Zealand Outbound Travelers’


9. AN OVERVIEW OF TRAVEL SURVEY ON BEHAVIOUR, ATTITUDES AND

PERCEPTIONS OF NEW ZEALAND TRAVELLERS

Part three of the report is based on the Travel Attitude and Motivations Survey carried out by

the researcher in 2008. In the survey, respondents were asked to indicate the importance on

the given selections (very important, important, neither important or unimportant,

unimportant, very unimportant) or ranking on the scale of 1 - 5 in choosing a destination for

overseas holiday. The questionnaire is attached at Appendix – a. The survey provides

detailed information of travellers’ attitudes, behaviours, travel motivators, type of

accommodation preferred, desirable Asian holiday destinations, their impressions on Sri-

Lanka and demographics of the participants.

Table 6: Distribution of Income of the Sample

Annual income Category Frequency Percentage

$35,000 - $45,000 53 34.2%

$46,000 - $55,000 20 12.9%

$56,000 - $65,000 18 11.6%

$66,000 - $75,000 27 17.4%

$76,000 - $85,000 10 6.5%

$86,000 & over 27 17.4%

The participants for the survey were adults of 18 years and over. The sample comprised 155

usable surveys; of these, there were 76 Male (49 percent) and 79 Female (51 percent).

Further, 34.2% of the participants in the sample were drawing an income of $35,000 -

$45,000 (Refer Table: 6) as the highest share, while participants in both “$66,000 - $75,000”

and “$86,000 and over” categories were sharing 17.4% each.

Throughout the report, a number of tables and graphs are included to assist in identifying

differences in the travel behaviours, patterns and motivations of the travellers who are

looking for accessible travel destinations. This report seeks to develop a profile of those

travellers of New Zealand, who have stated prime motivational factors in choosing an

overseas holiday destinations. By focusing on this group exclusively, the report endeavours

to provide a more specific and actionable profile for this travel segment. This part of the

report is more marketing oriented as the statistical analysis has been made to facilitate

marketing decisions for the service providers in the travel sector.


10. SURVEY DATA ANALYSIS AND DISCUSSION

10.1 Whether they have travelled overseas in last 12 months?

The first question in the survey asks the participants if they have travelled overseas for a

holiday in the past 12 months, according to the Table: 7 shown below, the analysis indicates,

that 88 persons (56.8 percent) have travelled overseas while 67 people (43.2 percent) have

not.

Table 7: Overseas holiday in past 12 months

Particulars Frequency Percentage Cumulative

Percentage

Yes 88 56.8% 56.8%

No 67 43.2% 100%

Total 155 100%

10.2 How do they normally book air ticket?

The next question asks how the participants normally book their air tickets; 88 people (56.8

percent) book through an agent while 67 persons (43.2 percent) book on line; indicating that

travellers prefer a flexible personalized service and guidance in selection of travel

destination.

10.3 How frequently do they travel?

The participants were asked how often they travel overseas on holiday. As illustrated in

Table 8, the highest number of times was “Twice in the past 3 years” with 29 percent of the

respondents, while “Once in past 3 years” and “Three times in past 3 years” categories place

second and third in the order. On the other hand 19.4% of participants have not travelled

much in the recent past. The other significant fact that is evident in the analysis is that the

sample has split into almost similar size in four categories given.

Table 8: Frequency of Travelling

Particulars Frequency Percentage

Once in past 3 years 42 27.1%

Twice in past 3 years 45 29.0%

Three times in past 3 years 38 24.5%

I didn't travel very much in past 30 19.4%


The statistical mean of this question is 2.36; indicating that the actual highest frequency is

slightly leaning towards “three times in past 3 years” category from “twice in past 3 years”

category. It suggests that New Zealand travellers incline to go overseas more than twice in

three years.

Table 9: Relationship of Income and Frequency of Travel

Income category Mean Standard Deviation Travelling Frequency

$35,000 - $45,000 2.55 1.218 Three times in past 3 years


$56,000 - $65,000 2.06 1.110 Twice in past 3 years


$76,000 - $85,000 1.80 0.632 Twice in past 3 years

$86,000 & over 2.11 0.974 Twice in past 3 years

The statistical analysis in Table: 9 above, illustrates the relationship between income and

frequency of overseas travel. It is evident that increased income does lower the occurrence

of overseas travel.

10.4 How long do they spend in an overseas holiday?

According to Graph 14, New Zealand travellers in general spend 11 to 15 days in an

overseas holiday, as 31.6% of participants have confirmed. Similarly, the “more than 15 days

category” is about the same. The smallest category is Less than 5 days.

Graph 14: Duration of Overseas Holiday

31% 31.6%

% 28.4%

%

9%


However; in the statistical analysis, the mean falls a small degree before the “11 – 15 days

category” at 2.85 indicating that in an average the majority of respondents have spent their

holidays between “6 - 10 days” and “11 – 15 days.” The standard deviation of 0.968; signifies

that it is a strong choice with lower distribution of scores.

10.5 What do they consider important for a perfect holiday?

The survey includes a question that asks the participants what is important in their choice of

holiday. As illustrated in Table: 10, the most important one with the lowest mean, was

“Sightseeing,” the next most important was “Relaxing” and the least important was

“Activities”.

Table 10: What is important for a Perfect Holiday

Particulars Mean Standard Deviation

Escape 2.87 1.366

Sightseeing 1.92 0.987

Relaxing 2.72 1.357

Activities 3.81 1.174

Shopping 3.71 1.238

Low standard deviation in the sightseeing category indicates that the variability of data is low

and most of the participants were in unanimous agreement that sightseeing is very

important. In contrast, the category "Escape" has the highest standard deviation though it

has been ranked second in importance, thus higher spread of data; meaning the decision is

relatively divided.

10.6 How important is the Cost of travel for selection of their overseas holiday destination?

Particulars Mean Std.

Deviation

Median Skewness Kurtosis

The Whole Sample 1.61 0.687 2.00 1.164 2.628

Gender wise Analysis

Male 1.76 0.764

Female 1.47 0.574

Table 11: Perception on Travel Cost


The survey participants were asked how important the cost is in selection of a travel

destination. This question used a five point scale with 1 = Very Important and 5 = Very

Unimportant. Table 11, illustrates that the data set has a Skewness of 1.164; which means

there is non-symmetric distribution of the scores which are bunched up on the left of the

score scale; “Very important” and “Important” categories. On the other hand, the Kurtosis of

2.628 signifies relatively peaked and a heavier tail of distribution (Foster, 1998, P.88). At the

same time, the median of distribution of the scores is two; as such, the majority of the

participants considered that the cost is important in choosing a holiday destination.

An interesting fact was revealed, when the survey results were statistically analysed for

gender. The result of t-test provides an assessment of difference between the mean in each

set of data in the sample as illustrated in Table 11. This indicates that there is a variance on

perception of cost between male and female in relation to selection of holiday destinations.

The mean of Male participants is 1.76 in comparison to the means of whole sample; 1.61

and 1.47 of females. These results indicate that the perception of male on cost of travel is

more inclined to “important” while females consider it is “very important.”

Table 12: Relationship of Income and Cost of Travel

Income Category Mean Standard Deviation

$35,000 - $45,000 1.51 0.608

$46,000 - $55,000 1.50 0.607

$56,000 - $65,000 1.61 0.608

$66,000 - $75,000 1.59 0.636

$76,000 - $85,000 1.60 0.699

$86,000 & over 1.93 0.917

Further, Table 12; illustrates the variation of mean in the distribution of score of “Cost,” in

relation to the income of the survey participants. Analysis shows that the mean increases

with the increased annual income. That is, the participants in the lower bracket of income

consider that the cost of travel is “very important” while the participants in the higher income

bracket view it as “important” as the mean progress towards two.


10.7 How far following a budget is important for them in planning a holiday?

Particulars Mean Std.

Deviation

Median Skewness Kurtosis

The Whole Sample 1.85 0.866 2.00 1.021 1.202

Gender wise Analysis

Male 1.95 0.937

Female 1.76 0.788

Table 13: Perception on following a Budget

The responses to the question; "importance of following a budget in planning holiday” have

been statistically analysed and illustrated in Table: 13 above. The statistical median is

established at two, indicating following a budget is “important” like in the case of cost. In

addition to the higher standard deviation, Skewness and Kurtosis are placed between 1.021

and 1.202 respectively. It indicates that the decision is comparatively divided. However, the

t-test analysis of gender further provides the evidence that the perception of both genders on

the subject matter is unanimous as it has been noted before.

10.8 How much do they spend on an overseas holiday?

Particulars Frequency Percent

$1000 - $2000 31.0 20.0

$2001 - $3000 56.0 36.1

$3001 - $4000 44.0 28.4

$4001 - $5000 24.0 15.5

Table 14: Overseas Holiday Expenses

In response to the question "the likelihood of expenses in an overseas holiday", a majority

answer $2001 - $3000 (Refer Table 14). The second and third ranked responses were

$3000 - $4000 and $1000 - $2000 respectively.

Table 15: Analysis of Holiday Expenditure Gender- wise

Gender Percentage Mean Standard Deviation

Male 49% 2.58 0.942

Female 51% 2.29 1.178


The t-test on gender analysis of group data as illustrated in Table 15, shows that Males

inclined to spend more ($3001 - $4000) on overseas holiday than females; the mean is 2.29;

indicating that they tend to spend $2001 - $3000; so does the whole sample. The standard

deviation of 1.178 in female is slightly higher than the case of male, shows that the decision

is relatively divided with wider spread.

10.9 What factors influence on their decisions to choose Asia as a holiday destination?

Particulars Factors

Cost Experience Weather Beaches Guided To.

Mean 1.67 2.27 3.33 3.49 4.25

Median 1.00 2.00 3.00 4.00 5.00

Std. Deviation 0.912 1.147 1.146 1.125 1.048

Skewness 1.533 0.733 -0.254 -0.531 -1.309

Kurtosis 2.365 -0.339 -0.638 -0.378 0.950

Table 16: Influential Factors for choice of Asian Holiday Destination

The next question in the survey asks the participants, if they select Asia as a holiday

destination what influences their decision. Statistical analysis of Table 16 shows that the

“cost” is most important in choosing an Asian holiday destination with median of one. The

standard deviation relating to that response was below one; therefore, the decision is firm

and undivided. The other most important factors influencing the decision were “gaining

Experience” in the second place and “Weather” in the third place. The least important factor

was “Guided Tour.”

“Weather” as the third deciding factor has the broader distribution among the set of scores;

meaning the choice is highly distributed. The negative Kurtosis also supports the aforesaid

line of reasoning. On the other hand, the negative Skewness shows a longer left tail, where

the mass of the distribution is concentrated on the right of the data set.


10.10 Their likelihood of visiting specific Asian countries

The survey participants were subsequently asked to indicate their likelihood of visiting given

six Asian countries. This question used a six point sale with 1 = most likely and 6 = least

likely.

Country Mean Standard Deviation

Sri-Lanka 3.45 1.766

India 4.02 1.677

China 3.83 1.725

Japan 3.34 1.715

Bangkok 3.33 1.491

Singapore 2.90 1.607

Table 17: New Zealand travellers’ Choices of Asian Holiday Destinations

The lowest mean represents the most popular choice; which is Singapore with the mean of

2.9 (Refer Table: 17). Bangkok and Japan have been chosen second and third respectively,

while Sri-Lanka has been picked for fourth as an Asian holiday destination. The higher

standard deviation, ranging from 1.6 to 1.7 in all the cases, indicates that the data sets have

been spread out over a wider range of scores; indicating a divided decision.

Table 18: Analysis of Preferential Asian Holiday Destinations Gender-wise

Particulars

Statistical Mean

Singapore Bangkok Japan Sri-Lanka China India

Male 3.00 3.20 3.24 3.46 3.75 4.22

Female 2.81 3.46 3.44 3.44 3.90 3.82

Statistical analysis in Table 18, on gender indicates the variation of preferences. The lower

mean signifies the stronger preference of the particular gender for specific destination.

Females show stronger preferences for Singapore and India than do males, while males

prefer Bangkok, Japan and China. The picture changes in the case of Sri Lanka, where Male

and Female preferences are equal.


10.11 How important is the given categories in influencing the aforesaid selection of Asian

travel destination?

Table 19: Factors Influencing the Selection of Asian Travel Destinations

Particulars Categories

Best Travel

Cost

Non-stop

flight

Best

Accommodation

Travel

Safety

Easier

overall

Mean 1.65 3.62 3.20 3.52 3.01

Mode 1 5 3 5 2

Std. Deviation 0.938 1.191 1.078 1.479 1.375

In the next question, the participants were asked to rank on a five-point scale the importance

of various factors influencing their choice of a destination in Asia. The “mode” in Table 19

signifies highest frequency of a particular value in the data set, when participants have

ranked the selections in the scale where, 1 = most important and 5 = least important.

Analysis of Table 19 shows that the “Best travel cost” has the lowest mean; therefore, most

of the participants have selected it as the most influential factor in their choice of destination.

The categories; “Easier overall” and “Best accommodation” have been ranked second and

third respectively, while “Travel safety” and “Nonstop flight” have come next in the order. The

relatively low standard deviation in “best travel cost” points out that the selection is

unanimous.

The questions specifically on Sri-Lanaka were asked next in the survey.

10.12 What comes into their mind, when thinking of Sri-Lanka?

The participants were given six well known facts about Sri-Lanka and asked to rate them on

a six point scale where 1 = first recollection.

Table 20: Sri-Lanka – the order of recollection

Particulars Tea Cricket War Beaches Heritage Wild Life

Mean 2.21 2.38 3.64 4.10 4.15 4.37

Std. Deviation 1.319 1.429 1.735 1.347 1.498 1.465

As per Table 20, the first recollection with lowest mean was Tea, while Cricket and War have

come to second and third in the order. The last rated recollection was wildlife. The standard

deviation in this question has higher values ranging from 1.3 to 1.7, indicating a divided

answer with a very high spread of scores.


10.13 What kind of accommodation is preferred, if they travel to Sri-Lanka?

Table 21: Preferred Accommodation in Sri-Lanka

Particulars Frequency Percent

5 star 40 25.8

3 star 43 27.7

Bed & Breakfast 37 23.9

Holiday Home 35 22.6

Statistical Analysis

Mean 2.43

Median 2.00

Std. Deviation 1.105

Skewness 0.101

Kurtosis -1.315

As indicated in Table 21, the responses for the question about the accommodation in Sri-

Lanka, received divided answers with over 22% for each of the four categories. The median

of 2 indicates that the majority of participants prefer “3 star class” accommodation in Sri-

Lanka. However, the standard deviation of 1.105 and negative Kurtosis of 1.315 confirm the

indistinct distributed results. Further, the data set has a Skewness of 0.101; which means

there is a relatively symmetric distribution (0 = symmetric distribution).


11. CONCLUSION

It appears that most New Zealand travellers are primarily holiday seekers. The analysis of

the survey reveals perceptions and behaviours of New Zealand travellers, and facts which

may be used in tourism marketing.

New Zealanders have proven very accepting of the internet as a means of information

gathering (“Internet World Stats”, 2008), although purchasing travel products over the

internet has not increased at the same pace. Booking travel over the internet may be quite

complex as travel products are not always clearly described accurately; travellers do not

have the advantage of best product and price comparisons without knowledge of all travel

information, such as insurance, visas and health requirements etc. But, they are served by

highly trained travel agents who ensure that important information is provided and

understood by their client (“The Evolving Role of Travel Agents”, 2009). Similarly, in the

survey analysis, travellers continue to regard travel agents as a convenient and trusted

source of obtaining travel products.

Commonsense suggests that higher income of prospective travellers should result in higher

frequency of overseas travel. Yet, survey results show that the frequency of travel decreases

with increased income. This suggests the hypothesis that the higher the income of people,

the incidence of overseas travel decreases. As a matter of speculation, higher financial

commitments associated with increased income might cause the situation. The analysis

further revealed that the travel cost is allied with the income of travellers, where perception

on subject matter changes from “Very Important” to “Important,” along with increasing

income of travellers. Therefore the prospective travellers in the lower income bracket are

shown to be more cost conscious, though they have higher propensity of travel. The

questions relating to travel expenses carried an undivided answer, indicating the attitude on

the subject matter is unanimous. Moreover, the most popular purpose of overseas holiday is

“Sightseeing” out of other given common travel activities. The other push factors with regard

to New Zealand out bound tourism, in an order of importance were; relaxing, escape,

shopping and participating activities etc.


The responses on Asian travel focused questions revealed that the cost is the prime

motivator or the pull factor for New Zealand travellers. Travellers have shown that they were

keen to take that challenge as an “Experience;” indicating that New Zealand is also a

potential market for Asian inbound travel operators. Singapore was the most popular Asian

travel destination of New Zealanders out of the given alternatives. Tour marketers in those

countries should take advantage of the gender analyses, in implementing focused marketing

campaigns to attract specific market segments.

New Zealand travellers chose Sri-Lanka as the fourth-preferred Asian holiday destination.

The question specific to Sri-Lanka indicates that the prevailing war, confined to the Northern

part of the country is not the first recollection of New Zealand travellers, but the third. This

suggests that there is scope to promote travel packages to Sri-Lanka when war does not

look like a barrier, if tour packages are planned taking into consideration the push and pull

factors noted before. Moreover, the country is endowed with a heritage of over 2500 years,

which has left ruins of the ancient civilisation. This suggests a strong point of value addition

to Sri-Lankan tourism by promoting heritage tourism. Offering competitive tour packages is a

viable option, if currencies are compared - that is; exploiting Sri-Lanka’s strengths and

unique appeal as one of the world’s most beautiful countries.

The outlook of New Zealand outbound tourism in the long term is still positive amidst the

current economic turmoil. Overall it seems that New Zealand outbound tourism needs to be

understood that not all travellers have similar interests and perceptions, as supported by the

findings of this research. In the circumstances, tourism operators are required to find the

balance between what they want to provide to travellers by way of experience, with greater

understanding of why travellers should choose such experience and which component of

those aspect the travellers enjoy the most.

This report has been a very brief overview of the market, drawing on various data sources

and a brief consideration of their implications for the outbound travel segment. In the

circumstances, further research is recommended to reach a decisive conclusion in the area

of study.


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APPENDICES


Appendix – a: Questionnaire for Travellers

My name is Lalith Siriwardena. This research is a part of my MBA programme. I am exploring behaviours,

attitudes and perceptions of NZ travellers. The objective of the research is to understand factors that influence

the travellers to choose Sri-Lanka as a holiday destination.

Please note that no personal information will be collected and stored and only group results will be reported in

the thesis. You can skip over any question/s given in there. If you fill in and return the questionnaire, I will

assume that you have given the consent for this research. Further, if you have any questions in this regard,

please do not hesitate to contact me on email:[email protected] or my supervisor Dr. Tim Lockyer on

email: [email protected]. Thanks for agreeing to take part in this research.

For each question, please select relevant answer that most closely represents your situation, rating from 1 to 5

where 1 equals most likely and 5 equals least likely. Please note that there is no right or wrong answer.

1. Have you travelled overseas for holiday in the last 12 months?

Yes No

2. How do you normally book your air ticket?

a) Through Agent b) Booked online

3. How often did you travel overseas for holiday?

a) Once in past 3 years b) Twice in past Three Years

c) Three times in past 3 Years d) I didn’t travel very much in past

4. How many days on average do you normally spend for your overseas holiday?

a) Less than 5 dys b) Between 6 – 10 dys c) Between 11 - 15 dys d) More than 15 dys

5. If you think of a perfect holiday, what is important to you? Please rate each of the followings from 1 to 5. Use each number only once.

Category Very Important

Important

Neither Important or Unimportant

Unimportant Very Unimportant

Escape 1 2 3 4 5

Sightseeing 1 2 3 4 5

Relaxing 1 2 3 4 5

Activities 1 2 3 4 5

Shopping 1 2 3 4 5

Others Please specify

6. Please indicate on the following scale how important the cost of travel (air fare + accommodation) is to the

selection of your holiday destination? Please rate each of the followings from 1 to 5 by circling a number.

Very Important Important Neither Important

or Unimportant


1 2 3 4 5

7. In planning a holiday how important is to follow a budget closely? Please rate each of the followings from 1 to 5 by circling a number

Very Important Important Neither Important

or Unimportant


1 2 3 4 5

8. On average how much do you normally spend on an overseas holiday including flight and accommodation?

Please Tick the appropriate box.

a) $1000 - 2000 b) $2001 - 3000

c) $3001 - 4000 d) $4001 - 5000

mailto:[email protected]


9. If you select Asia as the destination for your holiday what influences your decision? Please rate each of the

followings from 1 to 5. Use each number only once.

Factor Very Important

Important



Cost 1 2 3 4 5

Experience 1 2 3 4 5

Weather 1 2 3 4 5

Beaches 1 2 3 4 5

Guided tour 1 2 3 4 5

Others Please specify

10. If you decide to visit Asia for your holiday, please indicate how likely it is you would visit each of the

following countries? Please Rate from 1 to 6 where 1 equals most likely and 6 represents least likely.

Sri-Lanka India China Japan Bangkok Singapore

11. How important is each of the following categories in influencing your selection as in question 10. Please

rate each of the followings from 1 to 5. Use each number only once.

Category Very Important

Important



Best Travel cost 1 2 3 4 5

Non-stop flights 1 2 3 4 5

Best Accommodation 1 2 3 4 5

Travel Safety 1 2 3 4 5

Easier overall 1 2 3 4 5

12. If you think of Sri-Lanka what comes into your mind? Please rate followings from 1 to 6.

Tea Beaches War Wild life Cricket Heritage

13. If you travel to Sri-Lanka, what kind of accommodation do you prefer?

a) 5 star b) 3 star

c) Bed & Breakfast or Guest House d) Holiday Home

14. Now you have come to the final stage of questionnaire. Last two questions are about you. Please tick your

gender

Male Female

15. Which statement below matches the annual income of your family?

a) 35,000 – 45,000 b) 46,000 – 55,000

c) 56,000 – 65,000 d) 66,000 – 75,000

e) 76,000 – 85,000 f) 86,000 & over

Thank you very much for your assistance in completing this questionnaire. If you wish to receive the summary of findings please email your request with contact details to:[email protected]


APPENDIX – b


APPENDIX – C

New Zealand Resident Departures

1983 - 2007

Year Ended

December

New Zealand resident

departures

Annual change

% change

1983 360,793 -15,118 -4.0

1984 379,764 18,971 5.3

1985 378,491 -1,273 -0.3

1986 490,515 112,024 29.6

1987 637,149 146,634 29.9

1988 757,154 120,005 18.8

1989 716,329 -40,825 -5.4

1990 717,278 949 0.1

1991 778,956 61,678 8.6

1992 750,895 -28,061 -3.6

1993 799,659 48,764 6.5

1994 823,834 24,175 3.0

1995 920,107 96,273 11.7

1996 1,092,879 172,772 18.8

1997 1,132,200 39,321 3.6

1998 1,166,720 34,520 3.0

1999 1,184,922 18,202 1.6

2000 1,283,439 98,517 8.3

2001 1,287,296 3,857 0.3

2002 1,293,935 6,639 0.5

2003 1,374,408 80,473 6.2

2004 1,733,210 358,802 26.1

2005 1,871,801 138,591 8.0

2006 1,863,784 -8,017 -0.4

2007 1,980,215 116,431 6.2

(Source – Pivot Table – Outbound Travel, Ministry of Tourism NZ)


APPENDIX – d

Outbound Travel – all countries (Source – Key Statistics, Ministry of Tourism NZ)

APPENDIX – e

Outbound Trips by NZ Residents (Source – NZ Tourism)

Destination

No of Outbound Trips (000')

2006 2007 2008

No % No % No %

Australia 929 49.87% 978 49.47% 950 47.98%

U.S 87 4.67% 92 4.65% 94 4.75%

Canada 16 0.86% 18 0.91% 20 1.01%

China 51 2.74% 58 2.93% 60 3.03%

Thailand 29 1.56% 31 1.57% 31 1.57%

India 24 1.29% 26 1.32% 27 1.36%

U.K. 89 4.78% 96 4.86% 94 4.75%

Fiji 109 5.85% 96 4.86% 101 5.10%

Cook Island 45 2.42% 52 2.63% 55 2.78%

Samoa 31 1.66% 37 1.87% 37 1.87%

Sri-Lanka 3 0.16% 3 0.15% 2 0.10%

Rest Of the World 450 24.15% 490 24.79% 509 25.71%

Total 1863 100.00% 1977 100.00% 1980 100.00%


APPENDIX – f

Outbound Travel to Asia

Week number

2006/07 2007/08 2008/2009 Numerical change from previous year

Percentage change from previous year

Four weeks ended

Departures

Four weeks ended

Departures

Four weeks ended

Departures

One year ago

Current year

One year ago

Current year

1 01/10/06 21,965 30/09/07 23,031 28/09/08 20,979 1,066 -2,052 5 -9

2 08/10/06 21,481 07/10/07 22,464 5/10/08 21,324 983 -1,140 5 -5

3 15/10/06 20,679 14/10/07 21,006 12/10/08 22,004 327 998 2 5

4 22/10/06 17,631 21/10/07 17,739 19/10/08 21,427 108 3,688 1 21

5 29/10/06 16,328 28/10/07 17,496 26/10/08 19,739 1,168 2,243 7 13

6 05/11/06 16,900 04/11/07 17,529 2/11/08 19,964 629 2,435 4 14

7 12/11/06 18,824 11/11/07 19,316 9/11/08 19,890 492 574 3 3

8 19/11/06 21,918 18/11/07 22,481 16/11/08 21,898 563 -583 3 -3

9 26/11/06 24,544 25/11/07 24,351 23/11/08 24,382 -193 31 -1 0

10 03/12/06 27,330 02/12/07 27,677 30/11/08 26,078 347 -1,599 1 -6

11 10/12/06 28,078 09/12/07 28,960 7/12/08 27,273 882 -1,687 3 -6

12 17/12/06 28,842 16/12/07 29,850 14/12/08 27,135 1,008 -2,715 3 -9

13 24/12/06 31,564 23/12/07 34,549 21/12/08 29,578 2,985 -4,971 9 -14

14 31/12/06 31,380 30/12/07 35,929 28/12/08 33,170 4,549 -2,759 14 -8

15 07/01/07 27,154 06/01/08 31,443 4/01/09 30,930 4,289 -513 16 -2

16 14/01/07 21,990 13/01/08 26,983 11/01/09 . 4,993 . 23 .

17 21/01/07 17,560 20/01/08 20,198 18/01/09 . 2,638 . 15 .

18 28/01/07 14,272 27/01/08 15,756 25/01/09 . 1,484 . 10 .

19 04/02/07 14,703 03/02/08 16,788 1/02/09 . 2,085 . 14 .

20 11/02/07 15,079 10/02/08 15,519 8/02/09 . 440 . 3 .

November 27,742 27,664 27,898 -78 234 0 1

December 34,140 38,657 . 4,517 . 13 .

January 15,136 17,226 . 2,090 . 14 .

February 13,473 13,959 . 486 . 4 .

APPENDIX – g

New Zealand Resident Short-term Departures 1950-2000

(Source: Statistics NZ)


APPENDIX – h

New Zealand Resident Departures by Region of Residence 2004 - 2006

(Source: Statistics NZ)

New Zealand resident departures Year ended December 2006

Year ended December Departures per 1,000 people by purpose of travel(2)

2004 2005 2006 Holiday VFR(3) Business Total

Northland 36,443 42,143 40,559 120 96 25 271 21.7 48.6

Auckland 765,902 813,781 827,744 230 190 110 602 19.2 40.2

Waikato 112,080 127,054 122,403 146 106 39 332 20.0 44.1

Bay of Plenty 83,115 93,676 88,518 158 102 37 333 20.6 46.5

Gisborne 8,231 9,565 9,902 105 64 22 223 21.3 44.5

Hawke's Bay 40,451 42,016 42,277 131 91 28 282 19.8 46.3

Taranaki 28,176 30,712 31,539 144 90 34 300 20.1 45.6

Manawatu-Wanganui 57,707 64,564 60,166 123 84 28 267 20.1 44.9

Wellington 217,161 225,783 225,986 201 142 83 486 18.6 41.7

Tasman/Nelson 27,558 29,018 27,651 142 87 38 296 23.9 45.1

Marlborough 11,717 13,313 13,820 143 109 34 320 20.0 47.3

West Coast 6,774 7,116 7,772 128 93 16 255 20.0 45.5

Canterbury 214,313 240,114 232,739 212 127 57 438 18.7 43.1

Otago 62,867 70,481 66,730 158 105 32 334 21.8 42.9

Southland 25,578 26,852 24,789 138 81 23 268 18.9 44.4

Other(4)

32,234 31,886 38,733 … … … … 23.1 40.0

Total(5)

1,733,210 1,871,801 1,863,784 189 139 68 450 19.6 42.1

Average

absence

(days)

New Zealand region of

residence(1) Median age

(years)


APPENDIX – i

Effect of Exchange Rate on New Zealand Resident Departures

– Year ended March 2006

(Source: New Zealand Institute of Economic Research)

Characteristics and Motivations of Outbound Tourism of New Zealand

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